The newly-created Financial Services Regulatory Authority of Ontario (FSRA), has announced a standardized approach to guidance (the New Approach), replacing the legacy systems it had inherited from its predecessor regulatory bodies. This change had come in response to stakeholder requests for clarification.
The regulator has proposed that the New Approach will consist of four new guidance categories (the categories) to communicate and support requirements set out in legislation, rules, and regulations:
- Interpretation: Stating the regulator’s view of requirements under law (i.e. legislation, regulations, and rules) so that stakeholders are aware of when non-compliance may lead to enforcement or other supervisory action.
- Information: Presenting FSRA’s views on desirable or undesirable practices or public interest concerns, without creating or interpreting the obligations of regulated persons.
- Approach: DescribingFSRA’s internal principles, processes, and practices for performing regulatory duties, taking supervisory action, or exercising at the regulator’s discretion or other regulatory powers.
- Decision: Setting out FSRA’s rationale for a specific regulatory decision that may establish a precedent for the interest of other parties directly not involved in the matter.
Depending on the specific circumstances, the regulator will use a category to establish standard structures for stakeholders in a given regulatory sector. It is the goal of FSRA staff to use the new categories to build standard structures and styles for guidance that it believes will help stakeholders easily understand and differentiate between these categories.
More information about the New Approach can be found on the website of the Financial Services Regulatory Authority of Ontario (FSRA).
For more information, please call Barbara Hendrickson at BAX Securities Law (416) 601 -1004.
This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.